Spain Under Franco: Economic Development, Social Change, and Political Crisis (1959-1975)
ITEM 15: The Franco Era: Development and Immobility (1959-1975)
Economic Development
1.1 The Governments of Developmentalism
The governments formed by Franco in 1957 and those of the 1960s marked a sharp turn in direction, transitioning from a first stage dominated by Falangism to a second with the predominance of technocrats. Young economists viewed economic growth as the main guarantee of social stability. A new economic direction was developed with the 1959 Stabilization Plan. Goals included ending strong state intervention, removing obstacles to commercial and financial liberalization, stabilizing the economy by reducing inflation and deficit, and facilitating foreign capital investment. The convertibility of the peseta was announced.
Economic Growth Factors
- End of traditional agriculture, land consolidation, irrigation, agricultural mechanization, increased productivity, and reduced agricultural labor. Promotion of livestock and related products. The government encouraged consolidation and promoted new irrigation projects.
- Rapid industrialization, technology import, production modernization, and geographic expansion of the industrial fabric.
- Increased services: growth of tourism and complementary activities, and expansion of the administrative and financial sectors, along with the 1960s tourist boom.
Despite these advancements, the Spanish economy had limitations, evidenced by the 1973 economic crisis.
Social Modernization
2.1. Population Growth and Social Change
- Increase in population due to decreased mortality (especially child mortality) and a high birth rate, a result of improved living conditions.
- Migration: Rural exodus from agricultural areas (Andalusia, Extremadura, Castile, Murcia, and Galicia) to Spanish and European industrial cities (France, Germany, Switzerland, and Belgium). Increased internal migration to dynamic economic areas like Madrid, Catalonia, Basque Country, and Valencia. The young immigrants increased birth rates. These population movements exacerbated demographic and economic imbalances between territories. Dynamic areas concentrated population, experienced intense urbanization, and often lacked infrastructure, leading to slums. Other areas stagnated and depopulated.
- Changes in Social Structure: The development of an industrial economy and the expansion of the service sector transformed and consolidated an industrialized capitalist society. Salaried sectors grew and diversified, the middle class significantly increased its weight, and the urban bourgeoisie consolidated.
Franco’s Reformism and Immobility
3.1 The Government of Technocrats
Economic development and societal transformation led the government to undertake political reforms to mask aspects of the Franco dictatorship. Admiral Carrero Blanco’s political ascension strengthened the technocrats within the government.
3.2 Legislative Reforms
The new government direction necessitated legislative modernization to defuse social tensions and address discrepancies. The army practiced repression in 1963. The Public Order Court (TOP) was created, but repression persisted. The 1966 Press Law abolished censorship. The 1967 Law on Religious Freedom granted equality to all religions and freedom of practice. The 1967 Organic Law of the State maintained the dictator’s concentrated powers but introduced a separation between the head of state and the president of the government. In 1969, Juan Carlos de Borbón was appointed as Franco’s successor.
3.3 International Relations
- 1962: Spain applied for EEC membership.
- 1956: Spain participated in African decolonization.
3.4 The Triumph of Inertia
Dissensions between openness and hardliners erupted in 1969 after the Matesa scandal (a textile machinery company fraud linked to Opus Dei). Hardliners blamed the Press Law’s informational openness. Carrero Blanco defended strengthening domestic policy, amending the Press Law restrictively, and increasing repression.
5. The Crisis of Dictatorship
The crisis intensified after Franco’s death on November 20, 1975.
5.1 The Regime’s Political Crisis
In June 1973, Carrero Blanco was appointed prime minister to maintain unity and ensure continuity after Franco’s death. However, he was assassinated by ETA in Madrid. The split between hardliners and those favoring openness increased. In January 1974, Arias Navarro formed a new government seeking to unite both factions. The program, known as the “spirit of February 12,” aimed for greater openness, political pluralism, a new Municipal Act, trade union reforms, and a law on political associations. Right-wing sectors, fearing the regime’s destruction, forced Navarro towards immobility. The opening bid failed, demonstrating the regime’s inability to democratize from within.
The Rise of Anti-Franco Sentiment
Worker and student protests emerged, and opposition groups formed to demand democratization and prevent the regime’s continuation. In 1974, the Democratic Board of Spain formed in Paris, advocating for a provisional government and a democratic regime.
Franco’s Death
With the dictator incapacitated, the government faced the Sahara conflict, as Algeria, Mauritania, and Morocco coveted the territory. In 1973, the Sahrawi Polisario Front advocated for independence. Spain opted for decolonization and a self-determination referendum. In October 1975, King Hassan II of Morocco, supported by the U.S. to curb socialist Algeria, organized the Green March, a peaceful invasion. Facing potential military conflict, Spain ceded the Sahara to Morocco and Mauritania through the November 14 Agreement in Madrid. Spain’s abandonment led to an ongoing conflict between the Polisario Front (which proclaimed the Sahrawi Arab Democratic Republic) and Morocco. Franco died on November 20, 1975.